APSO Code of Ethical & Professional Practice (Appendix 1 of the Constitution, hereinafter referred to as the Code)

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1 INTRODUCTION APSO Code of Ethical & Professional Practice (Appendix 1 of the Constitution, hereinafter referred to as the Code) The aim of this Code is to set the standards by which members will achieve the highest principles of ethics, equity, integrity, professional conduct and fair practice in all their professional dealings and to conduct their business in a manner that will enhance the image and reputation of APSO and the Recruitment industry. GOAL & SCOPE OF THE CODE 1.1. Members are expected to observe the highest principles of ethics, equity, integrity, professional conduct and fair practice in dealing with other Members, Clients, Candidates, Employees and relevant stakeholders and to conduct their business in a manner that will enhance the image and reputation of the recruitment industry. APSO will offer guidance, advice and training to Members to achieve these standards APSO promotes freedom of association APSO has a zero tolerance for fraud or corruption This Code shall be binding on all Members of APSO and their employees who shall ensure that they are fully aware of the obligations contained herein Members shall not operate under Terms & Conditions, Service Level or other Agreements that are contradictory to the Code Members shall not behave in a manner prejudicial to, or likely to bring discredit upon, the prestige and good reputation of APSO, its Members or the recruitment industry Members, and their staff, shall work diligently to develop & maintain a satisfactory and up-to-date level of relevant professional knowledge. Members shall ensure that their staff are adequately trained and skilled to undertake their responsibilities and assure a high quality service Only the Board of Directors may issue statements to the media concerning the activities of APSO or its policies or in response to media articles or programmes Members shall familiarize themselves with and comply with all relevant South African statutes, regulations, registrations and other legal requirements which relate to their activities in the industry Members shall respect the rights of competitors and refrain from defamatory statements or acts of unfair competition In the event of a Member, Client, Candidate or employee of a Member becoming aware of and being able to substantiate any breach of the Code by a Member, such contravention should be reported to APSO National Office in writing Members shall not, directly or indirectly, approach employees of another Member with offers of alternative employment Members shall observe International Labour Organization (ILO) Conventions 29 and 105 and shall not enter and/or use, directly or indirectly, forced or bonded labour. The principle that employment is freely chosen shall always apply Members shall not, directly or indirectly, use child labour. In accordance with ILO 138 only workers above the age of 15 years, or over compulsory school-leaving age if higher, shall be employed Members shall observe ILO Convention 182 which directs that children under 18 years of age may not perform work which, by its nature, is likely to harm their health, safety or morals Restraint of Trade agreements may only be used to safeguard a Members protectable business interests and not to unfairly prevent a restrained employee from working in the industry Only members in good standing may use the APSO logo on their letterhead or other printed or electronic media to indicate APSO membership. Code ratified at AGM held 3 August 2011 Page 1

2 CLIENT SERVICE SECTION 2.1 A Client is defined as any entity with which a Member has a current Service Level Agreement or has accepted a fee within the last six (6) months. 2.2 Client may be defined as a Business Unit, Division, Site, Branch, Region or subsidiary of the client. Members shall: 2.3 Obtain from the Client such information pertaining to the Client and job assignment as is necessary to ensure accurate selection of Candidates for the vacancy. 2.4 Ensure that Clients receive a written copy of their Terms & Conditions of business, as registered with APSO, including fee structure, guarantee periods and clear description of services rendered, prior to the commencement of the assignment or at the time that candidate referrals are sent. 2.5 Ensure, as far as possible, that all Candidates referred meet the Client s requirements. 2.6 Ensure that information contained in CV s/reports/resumes submitted to Clients is as accurate as possible: Clients should be notified of any information that cannot be verified Details of a Candidate referred to a Client more than six (6) months from the date of the initial interview must be updated before submission Reference checks shall be taken out at an appropriate time in the recruitment process as mutually agreed with the Client Verification of qualifications shall be carried out at an appropriate time in the recruitment process as mutually agreed with the Client. 2.7 Requirements for Credit, Criminal and other checks must be agreed with the Client 2.8 Ensure that Candidates are properly and adequately interviewed and that interview notes are kept for at least two years in written or scanned format. The method of interviewing used shall be clearly stated on the CV or Résumé submitted to the Client. 2.9 Treat all information relating to the business of Clients with confidentiality and for the exclusive purpose of recruitment and selection Incorporate wording to the following effect into appropriate documentation (CV or Résumé) to protect both Members and Candidates: All information concerning the Candidate is furnished to the Client in strict confidence and on condition: (i) That it is not divulged by the Client to anyone without the Candidate s written consent, and (ii) That no contact whatsoever shall be made with the Candidate s present employer without the Candidate s written consent, and (iii) That no references shall be taken on the Candidate without the written permission of the Candidate or Member Not, directly or indirectly, approach a Candidate currently in a position placed by them with an offer of alternate employment, unless the Candidate initiates re-activation of their application Not approach an employee of a Client unless previously agreed with that Client. CANDIDATE SERVICE SECTION 3.1 Members shall not, directly or indirectly, charge any fees to candidates. 3.2 Members shall not discriminate unfairly against any Candidate at any time in the recruitment process, except when obliged to do so in terms of prevailing legal requirements, regardless of ethnic origin, colour, gender, age, religion, political opinion, nationality, social origin, sexual orientation, or any other distinguishing characteristics. Members shall: 3.3 Respect the privacy and dignity of the individual at all times. 3.4 Observe the principle that employment is freely chosen. 3.5 Not prevent candidates from seeking work via other sources. 3.6 Not download CVs from jobseeker portals and/or websites and submit them to any Client without first having registered the Candidate and conducted an interview. Code ratified at AGM held 3 August 2011 Page 2

3 3.7 Ensure that all Candidate information is treated as confidential, used exclusively for the purpose of recruitment and selection and not divulged in any way that may jeopardize the Candidate s current employment. 3.8 Obtain from the Candidate, all relevant information pertaining to their personal record, employment history, qualifications, skills, experience, and career requirements as are necessary to ensure proper matching on their behalf. 3.9 Not submit details of any Candidate to any Client without first: Disclosing to the candidate the name of Client, Position, key performance areas, hours, salary and benefits., and Obtaining the Candidate s express permission to represent them at that specific Client for that specific vacancy In the absence of an assignment, Members may market a Candidate to specified Clients on written approval from the Candidate Inform Candidates of the result of any application with either the Member or a Client of the Member Not offer inducements of any kind to any Candidate in order to persuade him/her to accept an offer of employment. INTERVIEWING 3.13 All interviewing shall be conducted in such a manner as to preserve the Candidate s privacy, confidentiality and, as far as possible, anonymity from other Candidates All Candidates should be interviewed by a Consultant of experience and/or qualification appropriate to the status of the assignment and the seniority of the Candidate Adequate notes shall be taken during the interview and form the basis of the Consultant s report to the Client. REFERENCE CHECKING 3.16 Reference checking shall be undertaken discreetly, in a manner that will not endanger the Candidate s present employment, and only with the permission of the Candidate In Search assignments no person from whom a reference is being taken shall be given the name of the Client without the Client s permission Credit, criminal, qualification and reference checks must be taken in strict accordance with applicable legislation. AGREEMENTS 3.19 Members shall ensure that any agreements and/or contracts between Candidates and Members are clearly explained by the Member to the Candidate to ensure that these are understood and entered into openly and transparently. Any financial obligations shall be fully disclosed at the outset and clearly set out in words and figures in a written agreement, a copy of which shall be provided to the Candidate Should a Member wish to enter into an exclusivity or sole mandate agreement to represent a Candidate such agreement shall be limited to specified Clients to whom applications must be submitted within seven days. SEARCH SECTION 4.1 Search is defined as any recruitment activity that involves a direct or indirect approach by the Member to a prospective Candidate, who has not previously indicated a wish to consider alternative employment. 4.2 Members shall ensure that all approaches to prospective candidates are made in a manner that will ensure confidentiality and not jeopordise the Candidate s current employment. 4.3 Members shall at all times respect their Client s wishes regarding confidentiality which should be recorded in writing. 4.4 No employee of a Client may be contacted by a Member directly, or indirectly, with an offer of alternative employment. 4.5 No Candidate, once placed by the Member and still in the employ of that client, may be contacted again directly, or indirectly, regarding alternative employment, unless such Candidate reactivates their candidature in writing. 4.6 Any potential conflict of interest shall be disclosed to Clients before Candidate referral presentations. ADVERTISING SECTION Code ratified at AGM held 3 August 2011 Page 3

4 5.1 Members shall not advertise in a misleading manner. 5.2 Members may only advertise bona fide job vacancies in newspapers, on job portals, notice boards and other print or electronic media. 5.3 Members shall, at all times, adhere to the Advertising Authority s Code of Best Practice. 5.4 Positions advertised on all electronic media and job portals, must immediately be removed once filled or withdrawn. TEMPORARY EMPLOYMENT SERVICES (TES) SECTION In additions to all of the provisions of the Code this section is applicable to Members who provide Temporary Employment Services (TES) as defined in the Skills Development Act (as amended). LEGAL OBLIGATIONS/GENERAL 6.1 Members shall fulfill all legal and contractual obligations to temporary employees, observe fair labour practices and respect freedom of association. 6.2 Members shall ensure that all temporary employees are furnished with a contract of employment and that a copy is given to the temporary employee as soon as possible after signature. 6.3 Members shall ensure that all temporary employees are given details of their working conditions, the nature of the work to be undertaken, rates of pay and pay arrangements and working hours. 6.4 Members shall comply with all statutory requirements and legislation including, Bargaining Council agreements. Wage Determinations and Sectoral Agreements. 6.5 Members shall not encourage employees of competitor companies, who are assigned to Clients where they also have temporary employees on assignment, to terminate any assignment prematurely. 6.6 Members shall ensure that they pay over the employer s portion of statutory benefits, tax deductions and other such insurances and taxes as required by law. 6.7 Members shall register with the required statutory authorities, including Bargaining Councils, SARS, UIF, SDL and the Compensation Commissioner. 6.8 Members shall annually submit to APSO proof of their compliance in respect of their statutory obligations as referred to in Clauses 6.6 and Members shall ensure that Service Level Agreements concluded with Clients comply with labour legislation Members shall not market their services on the basis that utilization of a TES will circumvent labour legislation Limited Duration Contracts of Employment shall not be used to circumvent the dismissal procedures prescribed in Section 198 of the Labour Relations Act Members shall act diligently in assessing risks in order to promote the safety of agency workers in their workplace Members shall not encourage employees of competitor companies, who are assigned to Clients where they also have temporary employees on assignment, to terminate any assignment prematurely. INDUSTRIAL ACTION 6.14 In a strike or lock-out situation, Members shall only supply replacement labour in accordance with the requirements of the Labour Relations Act. Furthermore, in any form of industrial action, whether lawful or not, Members must be adequately satisfied that the personal safety of their Temporary employees is not endangered. In addition, such Temporary employees must be advised of the strike or lock-out situation at the Client to which they are assigned. TRANSITIONING OF TES 6.15 Members shall be aware and acknowledge that in an open and competitive market, circumstances may arise when a Client wishes to change suppliers Members shall not encourage Clients to act in breach of their contractual obligations with other service providers The incoming member shall request the client, in writing, to notify the present TES of their intention to change suppliers and to which member they wish to transfer the temporary employees. The incoming member should also request the client to keep both TES s and affected employees informed during the transition process The present TES shall inform affected employees as soon as possible after a transition has been agreed. Code ratified at AGM held 3 August 2011 Page 4

5 ETHICS SECTION The Ethics Committee was established with the objective of promoting and protecting the professional status of members and the Recruitment industry by adjudicating fee disputes and resolving complaints from Clients, Candidates and Members. ETHICS PROCEDURES 7.1. A complaint brought by a Member, Candidate, Client, or employee against any Member (hereinafter referred to as the respondent ) for contravening the Code shall be made in writing to the APSO National Office. The complainant shall state:- (i) which sections of the Code are alleged to have been breached; (ii) the facts upon which the complaint is founded together with substantiating evidence; (iii) the outcome or remedy being sought The Ethics Committee shall assess all complaints received. If they are of the opinion that the complaint is unfounded, they shall give written reasons for not hearing the matter to the complainant If the Ethics Committee is of the opinion that the complaint has merit, they shall inform the respondent of the complaint against them and call for a written response. 7.4 The respondent shall have ten (10) working days to submit a written response to the complaint together with substantiating evidence. The Ethics Committee shall then convene and consider the case based on perusal of the written submissions and evidence provided by the parties The Ethics Committee has forty five (45) working days in which to provide an official ruling to both parties. Providing it can show good cause, and informs both parties in writing, the Ethics Committee shall be entitled to extend the deadline. Rulings will be provided in writing and records shall be kept on file Subject to their right of appeal and their right to initiate arbitration in terms of 7.10 and 7.11 Members shall comply with rulings made by the Ethics Committee or Appeal Board. 7.7 At the discretion of the Ethics Committee and/or Appeal Board an amount may be levied against the appellant in cases that involve an inordinate or unreasonable amount of time to adjudicate. RIGHT TO APPEAL 7.8 The complainant and/or respondent shall be entitled to appeal any ruling made by the Ethics Committee provided that it is made within seven (7) working days from the date that the ruling was made. Appeals must be made in writing, clearly setting out the grounds for the appeal and providing substantiating evidence in support thereof If the Ethics Committee considers that the appeal has sufficient merit, the Chairperson of the Ethics Committee will refer the matter to the National Executive Committee An Ethics Appeal Board shall then be appointed by the National Executive Committee. The Appeal Board shall comprise five (5) National Executive Members entitled to vote on that issue. The Appeal Board shall have the power to confirm or change any decision made by the Ethics Committee and shall provide all parties with the reasons for the decision reached. Members of the National Executive Committee, who were part of the Ethics Committee when the original ruling was made, whilst retaining their right to speak, shall not have voting rights The party that loses the appeal shall have the right to initiate outside arbitration. This must be done in writing by the appellant no later than ten (10) working days from the date of the ruling handed down by the Appeal Board. The South African Institute of Arbitrators will be asked to propose an arbitrator. All costs relating to this arbitration procedure shall be borne by the appellant, unless otherwise ordered by the arbitrator As a quicker and more affordable alternative to formal arbitration the party that loses the appeal shall have the right to initiate expedited private arbitration by requesting APSO to refer the matter to a recognized Dispute Resolution organization no later than ten (10) working days from the date of the ruling handed down by the Appeal Board. The dispute resolution organization will appoint a commercial arbitrator. The arbitrator will consider the matter on written submissions from the parties. The arbitrator s decision will be final and binding on the parties. All costs relating to this arbitration procedure shall be borne by the appellant, unless ordered otherwise by the arbitrator Code ratified at AGM held 3 August 2011 Page 5

6 PUBLICATION OF RULINGS 7.13 Findings of the Ethics Committee and/or an Ethics Appeal Board may be published, but in a confidential manner not naming the parties concerned, unless the National Executive Committee of APSO decrees otherwise. SANCTIONS If the Ethics Committee determines that a complaint is well founded it may, inter alia: (i) Impose conditions relating to non-repetition of the offence within a stipulated period; (ii) Issue a written warning; (iii) Issue a reprimand; (iv) Impose a fine; (v) Suspend membership for any period not exceeding one (1) year; (vi) Cancel membership 7.15 Members who do not abide by rulings made under the provisions of this code are liable to be sanctioned as provided for in 7.14 above An expelled member who can demonstrate that they have taken active steps to remedy their breach may apply for renewed membership after six (6) months of expulsion and may be reinstated at the discretion of the National Executive Committee A respondent who is an owner, principal, director, member or senior executive, may not plead that they are not responsible for the policy of their organization, or the actions of its employees. FEE DISPUTES In all cases relating to fee disputes the Ethics Committee uses the following formula which will take precedence over Members Terms & Conditions. 8.1 The party who completed all of the following three (3) steps will usually be regarded as the effective cause of the placement and therefore entitled to the fee: (i) Interviewed the Candidate; (ii) Obtained the Candidate s permission to release their details to that specific Client for that specific vacancy; and (iii) Obtained the Client s acceptance of the Candidate as an applicant for that vacancy. The Client s acceptance is considered to have taken place when the Client acts upon the introduction by requesting an interview with the Candidate introduced by the member. If neither party completed all three (3) steps, the Ethics Committee shall be entitled to use its discretion in making a decision. 8.2 Adherence to all sections of the Code of Best Practice & Ethics will be taken into account when deliberating cases and arriving at decisions. Code ratified at AGM held 3 August 2011 Page 6

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